In recent years, investment banks (IBs) have invested vast sums of money and resources in data management and analytics initiatives, however, evidence suggest little ROI is typically achieved in one of the most critical divisions of the investment bank: the capital markets front office. Often, the problem lies in failing to aggregate, standardize and enrich data before implementing an analytics program.
Mosaic Smart Data published a recent paper highlighting the challenges that front office divisions face in terms of laying the foundations for data and analytics based on a representative sample of IBs, explores the drivers behind these challenges, and suggests a set of recommended actions to achieve maximum ROI when implementing a technology solution.
A survey of front office staff (mostly FICC traders, salespeople and quants) across 11 global and regional investment banks have been surveyed with a questionnaire designed to assess data and analytics maturity. Results show that:
- 66% of investment banks struggle with data quality and integrity
- 83% of investment banks have no real-time access to data and/or data analytics
- 66% of investment banks’ staff struggle to access their data
- 50% of investment banks find their reference data is unfit for purpose